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American Beacon Developing World Income FUND

Portfolio information as of December 31, 2023
  • Summary
  • Performance
  • Overview

Investment Objective

The Fund’s investment objective is to seek income with capital appreciation as a secondary objective.

an alternative to traditional
global investing

The Fund is distinguished by a focus on, and longstanding expertise in, the debt of developing market countries and companies. The Fund’s investments in developing countries will generally include countries that are commonly referred to as “frontier market” countries. These least-developed countries have smaller, less mature markets. They are typically in an earlier stage of economic and financial sophistication than those commonly referred to as "emerging market" countries.

A TEAM OF MANAGERS

The Fund is sub-advised by two complementary fixed-income managers that invest as follows:

  • abrdn: Bottom-up investment process that applies fundamental research to select countries and corporate issuers.
  • Global Evolution: Top-down investment process that focuses on macroeconomic and political risk, as well as country-specific risk.

FUND HIGHLIGHTS

  • Invests primarily in sovereign and corporate debt within developing markets, as well as developing market currencies.
  • Over time, the Fund seeks to invest in 45 to 65 countries, local and hard currency denominated debt.
  • Managed by firms with expertise and long-term track records of investing in developing market debt.
  • Access to a unique debt market, offering attractive yields with lower volatility and low correlations to broad market indexes.

Total Fund Assets

$472.6 Million  

Sub-Advisors (%)

Global Evolution USA, LLC 60.1
abrdn Investments Limited 39.9

QUARTERLY FUND UPDATE*


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Investing in foreign developing countries, including emerging and frontier market securities, may involve heightened risk due to currency fluctuations and economic and political risks, such as lower incomes, less integrated financial markets, smaller economies, and less mature political systems compared to developed countries. Geopolitical and other events have led to market disruptions causing adverse changes in the value of investments broadly. Changes in value may be temporary or may last for extended periods. Investing in derivative instruments involves liquidity, credit, interest rate and market risks. The use of fixed-income securities entails interest rate and credit risks. Interest rate risk is the risk that debt securities will decrease in value with increases in market interest rates. Credit risk is the risk that the issuer of a bond will fail to make timely payment of interest or principal; the decline in an issuer's credit rating can cause the price of its bonds to go down. Investments in high-yield securities (commonly referred to as "junk bonds"), including restricted securities, are subject to greater levels of credit, interest rate, market and liquidity risks than investment-grade securities. The Fund's incorporation of environmental, social and/or governance (ESG) considerations in its investment strategy may cause it to underperform funds that do not incorporate these considerations. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

For a prospectus containing more information, including expenses, click here. Read it carefully before you invest or send money. Past performance is no guarantee of future results.

American Beacon is a registered service mark of American Beacon Advisors, Inc. American Beacon Funds and American Beacon Developing World Income Fund are service marks of American Beacon Advisors, Inc.